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. Last Updated: 07/27/2016

German Sentiment at 10-Year Low

BERLIN -- A survey by Germany's DIHK chambers of commerce and industry group showed Tuesday that German business expectations were at their lowest level since the recession of 1993 and no upturn was in sight.

Of 21,000 businesses questioned, only 17 percent expected business to improve while 42 percent saw it getting worse, taking the balance to minus 25 percent from minus 22 percent in the last survey in February.

"The German economy is mired in a stubbornly sluggish phase. The economy is forced to move sideways. There are no signs of improvement," DIHK chairman Martin Wansleben said in a statement to present its regular survey of the group's members.

Wansleben said the survey had shown corporate Germany was worried about constant discussion about tax increases, growing holes in the public finances and fears about whether social welfare problems could be resolved.

"All of this is accompanied by strikes in eastern Germany for a 35-hour week. No comment necessary," Wansleben said.

The survey showed that perceptions of current conditions were little changed from the February survey, with the balance slightly better at minus 24 percent from minus 25.

The balance of expectations for investment improved to minus 29 from minus 30, but that for exports was down to plus 7 percent from 27 and that for employment was unchanged at -31 percent.